USGT Is Providing a Rare Opportunity - Must Read

USGT Rebounds Nicely From Early Selling

Fellow Investors,

After being pounded in the first few minutes of trading by additional short selling and panicked investors looking to take profits, USA Graphite (USGT) rallied back to breakeven for Fridays close!

Volume was very heavy with more than 3 million shares changing hands in the first half hour of trading as the shares fell to the intraday low of $0.39. But the selling had pretty much finished by 10:00 AM.

If you look at the intraday chart (30-minutes) you get a very different perspective of the price action in USGT today. Of course, the share price fell hard in the first half hour of trading. But look at the rest of the day. As volume eased, buyers came back and drove the share price up by nearly 77% from the low to finish at $0.69, unchanged on the day.

Now look at the 1-minute chart. The only shares that traded above Friday's close were the 235.363 shares traded in the opening minute. That is only 2.5% of the record 9.4 million shares traded today. That means that THE OTHER 97.5% OF SELLERS ON FRIDAY ARE LOSING MONEY.

Most of the volume during the first half hour of trading came in the range of $0.45 to $0.55. So, as of right now, the average short seller is losing 20% to 35% of his money. OUCH!

Remember, you can't make money on a short sale until you buy back the shares. Until you buy back the shares you sold short you are exposed to infinite risk! These guys are hurting today.
 

Daily Chart Forms Hammer

If you are familiar with candlestick charts you will be pleased with Friday's chart. The price action has formed a hammer, which is a very powerful reversal indicator coming after a down trend. That is exactly what we have here.

Sellers were in control this morning, driving the shares all the way down to $0.39. But sellers yielded to the buyers, who gained control after the first half hour of trading and retained control of the price action throughout the day.

Were the buyers in control at the end of the day on Friday? Yes they were! And we think they will stay in control as the short squeeze gets under way on Monday morning.

USGT has a great chart and fantastic fundamentals, as we discussed yesterday. The shorts have given you an opportunity to double down at a bargain basement price. Don't miss out!


Happy Trading!









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